WAN ATIQAH WAN JAMARUL IMRAN, Mohamed Hisham Yahya, Muhammad Hafiz Ali, MOHD AKBAL QAMAS ABDUL BASIR .
This research studies the factors that affect volatility in cryptocurrency markets. The relationship between information asymmetry and cybercriminal risks are studied against the volatility and return of cryptocurrencies, namely, Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) dan Ripple (XRP). These cryptocurrencies are selected as they are cryptocurrencies that are being traded by Luno, Sinergy and Tokenzie (the exchange companies regulated by the Securities Commissions of Malaysia). 730 observations were collected for each cryptocurrency via the CoinMarketCap website, from 1 January 2019 to 30 December 2020. The ADF test and the Kolmogorov-Smirnov test have been conducted before the analysis of the data. The results show the stationarity and non-normality of the data collected. The EGARCH-GED model is used to analyse the relationship between information asymmetry and volatility. The findings indicate a significant relationship between information asymmetry and volatility in BTC, ETH ad XRP. The Event Study Method (ESM) is used to analyse the effect of cybercriminal risks on returns. The result shows that all four cryptocurrencies show a significant relationship between cybercriminal risks and returns.
The object of research is software for financial accounting and distribution of funds in a non-profit charitable foundation using smart contracts of the Ethereum platform. The work is aimed at designing and implementing a software application for a charitable foundation, which allows to exclude the misuse of funds of a non-profit charitable foundation. The paper proposes an implementation of the Ethereum smart contract for the software of a charitable foundation. In the app, users can apply for financial aid or make a charitable donation. The request for financial support is confirmed by administrators to avoid abuse by those seeking help. Anyone who has a crypto wallet can become a sponsor by transferring funds from its account to a selected request. The sponsor remains incognito when making a charitable contribution. After collecting the entire declared amount, the funds are automatically transferred to the crypto wallet of the request’s owner. A smart contract and a corresponding decentralized web application for interacting with it were experimentally deployed, and their joint work was tested. To implement the smart contract, the Solidity programming language was chosen; developed smart contract converted to bytecode using remix. The resulting bytecode is ready to be deployed on the Ethereum platform. Decentralized web application for interacting with the contract is implemented using Web3.js, Vue.js. A rough estimate of the cost of deploying a project on the Ethereum platform has been made. The deployment and operation of smart contracts and web applications comes with a certain overhead, which is most dependent on the cost of ether. However, this is a justified price to pay for the transparency of transactions and the shadowing of the turnover of funds of the charitable foundation. The results of the research can be used as a basis for further transformation into full-fledged software with the ability to submit all reporting documents to the relevant government agencies and sponsors.
The issue of secure data exchange and performing external transactions between robust distributed ledgers has recently been among the most significant in the sphere of designing and implementing decentralized technologies. Several approaches have been proposed to speed up the process of verifying transactions on adjacent blockchains. The problem of search has not been under research yet. The paper contains security evaluation of data exchange between independent robust distributed ledgers inside multidimensional blockchain. Main principles, basic steps of the protocol and major requirements for it are observed: centralized approach, subset principle and robust SVP. An equivalence of centralized approach and ideal search and verification functionality is proven. The probability of successful verification in case of using fully connected network graph or equivalent approach with fully connected graph between parent and child blockchain is shown. The insecurity of approach with one-to-one links between child and parent ledgers or with a subset principle is proven. A robust search and verification protocol for blocks and transactions based on the features of robust distributed ledgers is presented. The probability of attack on this protocol is mostly defined by the probability of attack on verification and not on search. An approach to protection against an attacker with 50% of nodes in the network is given. It is based on combination of various search and verification techniques.
Mamuka Ya. ZOIDZE, Givi O. SANADZE, Oleksandr Krakhmalyov, Olena I. Zinchenko · 5 authors
The article discusses the features of small unmanned aerial vehicles, perspectives, directions for the development of unmanned aerial vehicles with integrated combat units. The development trends of unmanned aerial vehicles indicate the direction of the use of the unmanned aerial vehicle in the group of small unmanned aerial vehicles operating on the principle of autonomous management. The main problems are related to solving management and groupwork tasks in the group, which leads to the use of group intelligence methods. The possibilities of group use of unmanned aerial vehicles are analyzed. One of the main goals of small drone technology is to create energy sources with high energy capacity and power. The exchange of information within a group of unmanned aerial vehicles requires the use of group-based intelligent methods based on self-organized decentralized management. Such methods are based on the self-organization of movement and communication in a group of insects, fish or birds. The analysis shows that the development trends of small-scale drones are primarily driven by advances in micro and nano technology, new approaches to aerodynamics and management, the creation of high-capacity power supplies and engines, creating autonomous micro and nano systems for navigation and communication using agreed integrated concepts. The direction of new technologies for use in the group of small unmanned aerial vehicles based on the principle of autonomous control is revealed. An algorithm for organizing interaction in a group of unmanned aerial vehicles is presented and the relevant tasks are discussed.
The mathematical model "Peer-to-peer distributed system for securable information storage and processing in enterprise networks" is described hereinafter. It is a versatile distributed operating system designed for the protection of distributed computing and insulation of private networks without restricting the possibilities of effective interactions, cryptographic security, protection from unauthorized access with the application of biometry and an innovative protocol of data exchange for topology control based on distributed ledger technology. The modeling was performed with the purpose of evaluation of performance of the system depending on productivity of the hardware of its nodes and the network's telecommunications equipment.
Over the past decade, in addition to multiservice networks, blockchain technology has undergone significant development due to the possibility of organizing a safe, integral, reliable exchange and storage of information. Due to the great demand for the technology, there is a problem of data transmission to the operators' networks. At the same time, a key task appears to consider the effect of this technology on network characteristics to predict traffic behavior on the network and ensure the required service quality indicators, as well as the stability of the state of the public communication network elements when the distributed ledger technology is operating. However, to consider and analyze the influence of technology in a full-scale experiment is a labor-intensive task that cannot always be performed, therefore, in this article, the authors propose to consider approaches to structural-parametric modeling of these systems.
В даній дипломній роботі було досліджено існуючі системи та технології, що дозволяють проводити обмін токенами різних блокчейнів атомарно, розроблено та описано алгоритм проведення атомарного обміну криптовалютами, розроблено хешовані смарт-контракти з часовою затримкою для мереж Bitcoin та Ethereum, розроблено інтерактивну систему, що дозволяє провести атомарний обмін криптовалютами. Результатом дипломної роботи є програмне забезпечення для проведення атомарного обміну криптовалютами для токенів мереж Bitcoin та Ethereum.
Introduction: the most promising approach to the creation of critical distributed information systems is the use of modern information technologies. In this regard, it is of great interest to study the possibilities of building systems of this class based on blockchain technology, which, unlike traditional transactional technology, involves distributed data storage with the formation of a distributed ledger. Purpose: the purpose of the research is to develop a conceptual framework for such an approach, covering the features of blockchain technology. Methods: the goal is achieved by conducting a comparative analysis of blockchain technology and transactional technology, developing an algorithm for the functioning of the system, determining the order of interaction between governing bodies and forming criteria for building a system based on blockchain technology. Results: the results of a comparative analysis showed that the introduction of blockchain technology into critical distributed information systems increases the efficiency of data collection and the availability of information resources stored and transmitted within the system. The developed algorithm for the functioning of a distributed information system based on blockchain technology contains three stages, during which, through the use of hash functions, converting the content of the transmitted document into a digital fingerprint and distributing a chain of data blocks across all network nodes, distributed data storage and complete security are ensured. Practical relevance: the considered order of interaction between governing bodies and exchange of information resources in a system based on blockchain technology demonstrated the possibility of practical implementation of this technology in a critical distributed information system and made it possible to form criteria for its construction. Discussion: as the main criteria, the coefficients of the timeliness of information exchange and the availability of information resources are proposed. To satisfy these criteria, in the search for optimal combinations of parameters for the implementation of blockchain technology, the simulation model of the functioning of a critical distributed information system based on blockchain technology should be used, which is considered as a further research direction."
Abstract. Today, one of the most discussed topics in the field of information technology is distributed registry systems. They attract investors and developers with their functionality. Distributed ledger systems are being introduced into business processes in many areas of human activity, which makes their contribution to development irreplaceable. One of the most vulnerable parts of such systems is the process of managing cryptographic keys, an attack on which can destroy the entire security of the distributed registry system. The aim of the research is to identify possible threats to the process of managing cryptographic keys, on the basis of which recommendations and standards for managing cryptographic keys in distributed ledger systems will be developed. Research methods: to achieve this goal, the structure of the life cycle of cryptographic keys was considered, an analysis of possible vulnerabilities in the process of managing cryptographic keys at each stage of the life cycle of a cryptographic key was carried out. In addition, the distributed ledger system was analyzed in the context of the identified vulnerabilities of the key management process using the example of the IBM blockchain and the possibility of outsourcing cryptographic key management systems was considered. Result: a set of possible threats to the process of managing cryptographic keys was proposed, the necessity of assessing the security of the key management system before deciding on the introduction of these systems into distributed registries was proposed, conclusions were drawn about the need to develop recommendations and standards for the process of managing cryptographic keys for such systems, as well as the possibility applicability of the recommendations for assessing the security of the implementation of outsourcing of cryptographic key management systems in distributed ledgers.
The article undertakes an analysis of the potential of using blockchain technology to strengthen the security of the state, which is guaranteed by a strong and efficient army. As part of his own studies, the author first characterizes the solutions that were first implemented in 2008 with the creation of Bitcoin. Blockchain technology, described as the most important achievement of humanity since the creation of the internet. It is increasingly used in areas such as payment management, digitization, and contract storage, or in the private sector, where data security plays a key role. Available reports and studies indicate that the United States, the Russian Federation, and the People's Republic of China are intensively working on the implementation of technology in the functioning of their armies. In turn, countries such as South Korea or India began pilot programs in 2019, which will eventually lead to the implementation of blockchain technology in their armies. Hence, the question arises, what military application blockchain technology has or may have in the foreseeable future, and how its use by armies can contribute to improving the security of the state? In the study presented, the following three areas of potential application have been distinguished: security in cyberspace, supply chain management, and more effective and reliable communication.
Open access
European and Russian Geopolitical Military Strategies
The technology of distributed registry, which revolutionary approach to recording and exchanging data between multiple data warehouses, is considered. The key features of distributed registry technology are highlighted and described. Particular attention is paid to blockchain technology and a directed acyclic graph. The principle of the operation of blockchain technology is described. All stages that go through transactions before they are added to the blockchain are graphically presented and described. All the main advantages of blockchain technology are described, and key network disadvantages are also presented. In describing the limitations of blockchain technology, real information was presented that confirms the existing flaws of this technology. Thanks to the optimized consensus mechanism, high scalability and the ability to carry out microtransactions, the technology of a directed acyclic graph is rapidly developing. The principle of operation of a directed acyclic graph is described and how the digraph differs from blockchain technology. The main advantages of a directed acyclic graph are described, which the digraph inherited from the blockchain and improved due to its structure. When comparing registers based on a directed acyclic graph and blockchain, interesting aspects of platforms can be identified. Despite the obvious similarities between paradigms, differences also persist. Based on the results, it becomes apparent that the future of distributed ledger technology is huge. Since a directed acyclic graph, due to its structure and advantages, has already overshadowed the blockchain architecture. The appearance of a directed acyclic graph will allow distributed registry technology to be introduced into all areas of activity on a global scale.
Apr 2, 2020·CEUR Workshop Proceedings, Vol-2588: Proceedings of the International Workshop on Conflict Management in Global Information Networks (CMiGIN 2019)
Наталія Краус, Наталія Олександрівна Андрусяк, Аліна Савченко, Maksim Iavich
Pursuing the purpose of effective functioning in today's conditions, the business is forced to transform rapidly, to modernize at all levels. The world is changing, erasing the limits of its certainty. Companies need quality trans- formations and strategies that are effective in the face of rapid change towards "deep" digitization. Massive corporate management systems increasingly need the flexibility to keep pace with change. And companies with an innovative cul- ture are more in need of creative tasks than implementing detailed regulations. In the post-industrial time of digital economy, issues related to the development of the information sphere, the media and communications, the usage of modern information systems to develop the economy and stabilize social development as a whole, come first. The basic principles of practical application of Block- chain are investigated in the work. The stages of development of Blockchain technology, the stages of development of Blockchain technologies by time, the application of distributed registry technology in Blockchain applications, the principles of construction and operation of Blockchain have been specified. The benefits of using NEM for business are substantiated and the components of Proxima X technology, protocols and service layers, on-line and off-line proto- cols, decentralized applications are exposed.
The article is devoted to the review of Blockchain technology capabilities. The article presents the main advantages and disadvantages of this technology that arise in the implementation of this decentralized system. The main threats of this technology, which slow down its implementation in modern society, are also considered. In addition, the problems of network scaling and 51% attack are considered.
This research proposes a new method of data synchronization between public blockchain networks and local machines. We discussed the proposed algorithm, and the mathematical model which achieves the shortest delay required for data synchronization. Tests were conducted to verify the correctness of the proposed model. Then a comparison is made with the current available classical synchronization methods. Suggested method may be useful for future DApps applications on Ethereum network.
This paper introduces a new method of Blockchain formation for reliable storage of personal data of ID-card holders. In particular, the model of the information system is presented, the new structure of smart ID-cards and information on these cards are proposed. The new structure of Blockchain, "Blockchain Tree", allows not only to store information from ID-cards but also to increase the level of security and access control to this information. The proposed Subchains system allows us to integrate Blockchain of the lower level to Blockchain of the higher level, allowing us to create a multilevel protected system.
Open access
3 source records
cs.CR
Cybersecurity and Information Systems
Advanced Research in Systems and Signal Processing
This article discusses the theoretical composition of the two consensus algorithms in order to obtain a fundamentally new solution to the problem of consensus in a distributed ledger technologies.
A specific number of transaction confirmation blocks determines average time of receiving and accepting payments at cryptocurrencies, and the shortest confirmation time for the same level of blockchain security provides the best user properties. Existing papers on transaction confirmation blocks for Bitcoin use implicit assumption of prompt spreading of Bitcoin blocks over the network (that is not always the case for the real world conditions). The newer publications with rigorous analysis and proofs of Bitcoin blockchain properties that take into account network delays provide asymptotic estimates, with no specific numbers for transaction confirmation blocks. We propose three methods for determination of required number of confirmation blocks for Bitcoin and GHOST on networks with delayed message delivery with different models that take into account the possibility of faster adversarial node syncronization. For the GHOST we propose the first (to our knowledge) strict theoretical method that allows to get required number of confirmation blocks for a given attacker’s hashrate and attack success probability.
After its introduction in 2008, increasing Bitcoin prices and a booming number of other cryptocurrencies lead to a growing discussion of how much energy is consumed during the production of these currencies. Being the most expensive and the most popular cryptocurrency, both the business world and the research community have started to question the energy intensity of bitcoin mining. This paper only focuses on computational power demand during the proof-of-work process rather than estimating the whole energy intensity of mining. We make use of 160 GB of bitcoin blockchain data to estimate the energy consumption and power demand of bitcoin mining. We considered the performance of 269 different hardware models (CPU, GPU, FPGA, and ASIC). For estimations, we defined two metrics, namely; minimum consumption and maximum consumption. The targeted time span for the analysis was from 3 January 2009 to 5 June 2018. We show that the historical peak of power consumption of bitcoin mining took place during the bi-weekly period commencing on 18 December 2017 with a demand of between 1.3 and 14.8 GW. This maximum demand figure was between the installed capacities of Finland (~16 GW) and Denmark (~14 GW). We also show that, during June 2018, energy consumption of bitcoin mining from difficulty recalculation was between 15.47 and 50.24 TWh per year.
The authors proposed hardware accelerator for the proof-of-work (PoW) operation in IOTA cryptocurrency. IOTA allows making secure and authenticated quantum resistant channels between IoT devices for communication and micropayments with no fees. Hardware acceleration reduces transaction time and increases throughput. In the article authors consider a basic theory of IOTA operations, generating and signing transaction with Winternitz one-time signatures. The authors describe operation principle of a new ternary hash function Curl. Winternitz one-time signatures and ternary hash function make IOTA quantum resistant. The core of IOTA is called Tangle and unlike Blockchain has Directed Acyclic Graph structure. There are no miners in the Tangle and IoT devices themselves maintain network operation, which leads to unlimited scalability and absence of fees. To add new transaction to the Tangle, IoT devices need to perform PoW operation for spam and Sybil attack protection — iteratively calculate Curl hash function for the IOTA transaction and change nonce field of the transaction until obtained result doesn’t satisfy given criteria, which is some amount of consecutive zero ternary values at the end of transaction hash. The software implementation of Curl hash function is very slow, the PoW operation on embedded devices can last up to 50 minutes, so the hardware acceleration of PoW operation is relevant task. In the proposed work authors created hardware accelerator for IOTA PoW operation. The structure and operation principle of accelerator is described. The proof-of-concept implementations was launched on DE10-nano board, based on Intel programmable logic chip. The proposed PoW hardware accelerator has parameterizable structure. It is possible manually set the number of PoW computing units by changing parameter value. In such parameterizable system one PoW computing unit is master and all remaining PoW units are slaves. Master PoW unit absorbs IOTA transaction, except nonce part, to midstate register utilizing sponge-like approach. Then all POW computing units (master and slaves) preload own state registers from midstate, randomly change personal nonces and start iterative search of valid nonce. When one of PoW computing units finds a valid nonce, PoW operation ends, nonce stored to destination buffer in SDRAM and interrupt is generated for ARM CPU. Final implementation of IOTA PoW hardware accelerator for DE10-nano board contains 11 PoW computing units, delivers 13.2 MH/s hash rate and gives x1000 speedup, compared to software implementation from IOTA developers, for only 30% of 5CSEBA6U23I7 programmable logic chip resources at 100 MHz clock frequency. The average PoW computation time in such implementation is 0.8 second.Ref. 14, img. 6.
The comparative characteristic of consensus algorithms in distributed ledgers based on different technologies such as blockchain and directed acyclic graph is given in the article. Advantages and disadvantages of GHOST, Tangle and Hashgraph consensus algorithms are given, as well as recommendations of optimal variant selection.
Blockchain is one of the most popular topics for discussion now. However, most experts still see this technology as only part of Bitcoin, other crypto-currencies or money transfer systems. Often, new solutions, proposed by young researchers, are blocked by reviewers, only because these solutions can not be used for Bitcoins. However, Blockchain technology is more universal and can be used also in other areas, for example, in IoT, WSN and mobile devices. This paper considers the implementation of Blockchain technology in sensor networks as an element of IoT. The concept of "Rolling Blockchain" was proposed, which can be used to build WSN with the participation of Smart Cars, as nodes of the network. The order of block formation and structure in the chain is proposed and a mathematical model is created for it. We estimate the optimal number of WSN nodes, the number of connections between nodes, for specified network reliability values, was performed.
This paper considers the tasks of supporting the connectivity of nodes in communication networks of unmanned transport (VANET/MANET-networks). High dynamics, decentralization and absence of hierarchy in the networks of this type actualize the task of supporting the connectivity of nodes with software-configurable security services, providing the network protection. It is offered to use a Blockchain technology based system for VANET/MANET network topologyand authentication data distribution and storage. The issue of unlimited blockchain growth preventing this method from being implemented in VANET/MANET networks is considered. The existing solutions of this issueare analyzed and drawbacks are identified. A notion of blockchain with floating genesis block is introduced and its advantages over similar ideas are demonstrated thus allowing it to be used to resolve the issue of continuously growing blockchain within the systems with stalingtransactions as a whole and in VANET/MANET networks in particular.
The work out the developed method of interaction of components of distributed multi-level system of detection of malicious software on the basis of decentralized and self-organized architecture in local networks. Its feature is the synthesis of its requirements of distribution, decentralization, multilevel and self-organization. This allows you to use it autonomously. The basis of the distributed distributed system is its structural components, which are represented by autonomous software modules that can be in different states. The transition between module states is based on a defined set of transitions. Interaction and communication between autonomous software modules is based on their presence in certain states during operation and is determined by the rules of the developed method. Distributed system is a responsive system that will monitor selected events. Each program module places a resident mechanism, the motive mechanisms for the transition between states, the transitions between which are given by subsets of transitions, the data for which will be formed using the technologies of artificial intelligence. In addition, the feature of the components of the system is the same organization, which allows the exchange of knowledge in the middle of the system, which, unlike the known systems, allows us to use the knowledge gained by separate parts of our system in other parts. The developed system allows to fill it with subsystems of detection of various types of malicious software in local area networks. The method of interaction of components of a distributed multilevel detection system of malicious software provides a procedure for communication between parts of the system and the exchange of knowledge between them. It will be used to organize the interaction of system components and maintain its integrity. In order to solve the problem of the direct detection of malicious software in local area networks, methods will be applied that will be applied to the lower level of the system, which will include the architectural features of the distributed system and the technology of detecting the malicious software-based software. However, the developed method of interaction includes the ability to determine the state of a distributed multi-level system, depending on the states of individual modules, and on its basis, in accordance with it will be decided on the further operation of the system as a whole and its configuration. The method regulates the actions of the part of the system that relates to the bundling software of the distributed system. The conducted experiments on the use of the developed distributed system showed the possibility of attracting to the detection of the malicious software of computing power of 78 # 24 (2018) other hosts of the local network. The obtained results of experiments show an increase in the reliability of the detection of malicious software.